Process
As companies rethink logistics and the environment in the wake of the pandemic, self-contained urban farms hold growing appeal.
How it Works!
1.
IDENTICATION
PROPERTY
selection should be determined by theses metrics:
- Relationship to investment-active investors- either already a schedule F existing farmer per IRS tax filing has experience 3 of last 10 years or exempt if serving in military. Passive investors-intention to have professionally managed investor should take course and mentorship from USDA/FSA.
- Captialization, funding, loans and grants
- Location
- Crop selection
Helpful Resources
Plan application AI/Robotics/Hydroponics/Conservation
- Overlay plan based on existing or historical crops complete acre value (Ag Analytics) to structure plan and then present to USDA/FSA for input review and application identification of loans and grants.
- Selection of Smart Farm tech and ROI
- Conservation program
2.
PLAN
Helpful Resources
3.
PURCHASE
Due Diligence
- Title-confirmation of ownership/parcels/minerals/water/riparian rights
- Survey-confirmation of bilk and identification of plant-able land-conservation
- Combined value existing land/improvement/crops/equipment 70% land 60% crop 50% equipment. USDA loans up to $35 million at 70%ltv interest varies 4.5% currently. Best case scenario zero down.
- Projected plan-additional loans/grants /funds needed
- Application for all grants/loans USDA FSA concurrent unlike conventional lending you may apply for all loans and grants concurrently
- Application from ag lender-it is always a requirement that a loan application be made with an ag lender as well as they in many instances partner with USDA on shared risk of loan.
Helpful Resources
loan approval/closing-timeline 2-9 months depending on appraisal
Have your ducks in a row the most important step is to be a complete in forms and plan to expedite loan and grant process. USDA/FSA provide guidance in this process.
4.
LOAN
5.
IMPLEMENTATION
Implementation can begin during escrow by mutual consent but general will begin upon closing. On occasion sellers allow many of the steps required to implement during escrow process.
*When dealing in urban farming the transaction will be a commercial real estate transaction on
property but ag on every other aspect.
Hourly fees are intended to be reasonable as the intention is to identify the investment that
best for you. With this in mind a portion will be credited at the closing TBD. MORE will forgo a
portion of its fees in exchange for an equitable interest as an assurance that the long term plans
are mutually beneficial. I believe in having skin in the game you are not a mere transaction.
Expect MORE.
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It is the intention to More to remain actively involved in the success of all of our clients and as such a portion of our fee will be in equity in your project. Having skin in the game is a guarantee that we share in the success of your investment. Equity will vary a portion of consulting fees will be waived at close of escrow.
Consulting Topics:
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Selection of property, valuation
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Due diligence and ranking USDA/FSA
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Conservation planning
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Williamson Act
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1890 Title Grant Act
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County, state, federal tax incentives
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Smart Farming techniques, plans
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Purchase contract, submission process for funding
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loans
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grants
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Advisory and Board member
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Long term oversight and involvement